Occupational & Environmental Health Consultants, Inc. / 1-800-962-4198

Workers' Compensation

Conserving a Bigger Piece of the Pie

During the economic boom of the 90's, the cost of Workers' Compensation, whether because of direct or indirect cost of premiums or payments for the self-insured, seemed to be viewed as what the military would entitle acceptable losses. Though not written or spoken, such losses have been given lower priority during this period than at other times. Indications are, since the economy has been on the decline, that these costs are having more effect than ever on the bottom line. In consideration of the increasing numbers of claims with a workforce who feels insecure about;

Their jobs
Their lack of motivation (since over-time pay is down)
The ever increasing age of workers (baby-boomers)

And so, the cost of Workers' Compensation is expected to continue to rise. As such, Managements' attention to these costs - are inevitably increasing.

In the aftermath of September 11th, 2001, the returns on investment (ROI) by insurance companies have been significantly reduced. Reports indicate that the cost of Workers' Compensation premiums will rise by 150% with fewer companies offering the insurance. Companies are being notified daily by their insurers that coverage is no longer available. As such, Managers are no longer willing, and some may not be able to accept as status quo, the monetary cost of work-related injuries and illnesses.

Though many do not realize that regulatory compliance is directly related to the decreasing Workers' Compensation type injuries… a viable safety program does just that!

Unlike in times past, the prevention of the health-related disorders being experienced by workers may not be as easy to prevent, in that health hazards have become as important as safety hazards, therefore successful Health & Safety programs must be geared toward an aging workforce with changing gender demographics. As such, more attention must be directed toward programs including, but not limited to Industrial Hygiene, Hearing Loss, Ergonomics, and Visual Problems.

However, there are several regulatory-based programs that contribute to increasing Workers' Compensation costs that must also be considered including, but not limited to Lockout/Tagout, PowerPress Safety, and Emergency Response. These and others, which, if not in-place can lead to injuries, amputation, or worse.

The key to decreasing the cost of Workers' Compensation is to align both Health and Safety Programs while designing them to meet regulatory requirements.

Kindest Regards

Dr. Ronald. J Lott
PA, MSed, MPH, Ph.D.